From Neste to LAX: FedEx’s Sustainable SAF Deliveries

Sustainable Aviation Fuel (SAF) could contribute around 65% of the reduction in emissions needed by aviation to reach net zero CO₂ emissions by 2050, according to the International Air Transport Association. 

Two companies leading the way in sustainable SAF are Neste, the world’s leading producer of SAF and renewable diesel, and FedEx, the world’s largest express cargo airline.

The two global leaders have agreed to supply 8,800 tonnes of blended SAF to FedEx at Los Angeles International Airport (LAX) – the largest SAF purchase by a US cargo line at LAX to date.

Collaborating for SAF

Through this agreement the blended fuel from Neste will include a minimum of 30% neat Neste ‘MY SAF’.

Neat SAF is blended with conventional jet fuel before use and is considered a “drop-in” fuel, meaning it works within existing aircraft engines and fueling infrastructure without any equipment updates.

In its blended form, the fuel will account for roughly a fifth of all jet fuel consumed annually by FedEx at LAX, based on FY25 fuel use forecasts. 

“As the world’s preeminent express transportation company, our initial US deployment of this fuel advances our sustainability goals and bolsters the aviation industry’s efforts to source and use more SAF,” says Richard Smith, Chief Operating Officer, International, and Chief Executive Officer, Airline, FedEx.

“While we know further growth of the SAF market is needed, alongside other innovations, we are proud to celebrate this milestone with our world-class air network.”

Neste ‘MY SAF’ reduces greenhouse gas emissions by up to 80% (when used in neat form) across the fuel’s life cycle, compared to using conventional jet fuel. 

Neste SAF is made from 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste.

FedEx’s SAF journey

The SAF purchase by FedEx builds upon years of the company’s efforts to co-create innovative, sustainable aviation technology by collaborating with other industry leaders. 

As well as Neste, FedEx has collaborated with the ecoDemonstrator flight-test programme  with Boeing – the world’s first commercial airplane flight using 100% SAF in both engines (2018).

As well as the procurement of SAF, FedEx is pursuing multiple ways to improve efficiency and reduce fuel consumption in its aviation operations overall, including aircraft fleet modernisation, fuel conservation initiatives and flight planning optimisation. 

“Procuring SAF is an important component of our aviation emissions-reduction strategy in the coming years, and we are pleased to have executed a deal with Neste to begin using this fuel in our air operations,” comments Karen Blanks Ellis, Chief Sustainability Officer and Vice President of Environmental Affairs, FedEx. 

“Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions. As we work toward our goal of carbon-neural operations by 2040, we need the SAF market to continue to grow to meet industry demand.”

Collectively, fleet modernisation and fuel saving efforts enabled FedEx in fiscal year 2024 to successfully achieve its goal of a 30% reduction in aviation emissions intensity from a 2005 baseline. 

FedEx set its first aviation emissions intensity reduction goals back in 2008.

Producing SAF with Neste

Neste has significantly expanded its SAF production capabilities in 2025. 

The company has begun producing SAF at its renewable products refinery in Rotterdam, the Netherlands, following major upgrades that enable the site to produce up to 500,000 tons annually. 

This renewable development brings Neste’s total global SAF production capacity to 1.5 million tons per year, or approximately 1.875 billion litres. 

“Neste is excited to work with FedEx and support their ambitious goal of reaching carbon-neutral operations by 2040 with our SAF,” says Carl Nyberg, Senior Vice President, Commercial, Renewable Products at Neste.

“Recognising the important role of air cargo in the global economy, FedEx is demonstrating how this industry can leverage available lower-emission solutions like SAF to reduce its environmental impact. We look forward to further strengthening our cooperation.” 

As well as Rotterdam, Neste operates SAF production facilities in Singapore and Porvoo, Finland, reinforcing its global supply network. 

To create a stable future, Neste is investing in further expansion, aiming to more than double the Rotterdam refinery’s capacity. 

By 2027, the site is expected to produce 2.7 million tons of renewable products annually, making it the world’s largest facility for renewable diesel and SAF, increasing Neste’s overall renewable fuels capacity to 6.8 million tons per year, with SAF representing 2.2 million tons.

This expansion aligns with regulatory initiatives such as the ReFuelEU Aviation Regulation, aimed at accelerating the aviation industry’s transition to low-carbon fuels. 

Collaborations like the one between Neste and FedEX are essential for reducing the largest amount of carbon emissions created from any method of transportation.

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